We think weakness will be buyable. Our thoughts on the Q:
- Display light, outlook in-line
- Optical light, outlook above
- GG in-line, outlook below
The push-pull on the stock will pivot around FCF in the quarter. Rich, and the misses will be bought quickly, as sequential uptick in balance sheet and buyback ability will be bought. Light, and the stock will have trouble finding near term support. Either way, our view is bullish once we get past the current quarter, as we see reason to expect TV sell through to pick up, glass display to continue shifting toward balance, re-acceleration in optical, and the GG miss will be just timing and simply rolling forward volume expectations on dual side glass + GG5 translates to above Street revenue for GG in 2018.
Stay tuned, more to follow. If you want to go through the whole deck with us, reach out:
